Required information (The following information applies to the questions displayed below.] Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 21,500 $ 37,000 Accounts receivable, net 34,400 50, 400 Merchandise inventory 84,640 142,500 Prepaid expenses 5,700 7,200 Plant assets, net 290,000 308, 400 Total assets $436,240 $545,500 Barco Kyan Company Company Data from the current year's income statement Sales $ 790,000 $882,200 Cost of goods sold 584,100 646,500 Interest expense 8,000 13,000 Income tax expense 15,185 24,355 Net income 182,715 198,345 Basic earnings per share 4.81 4.39 Cash dividends per share 3.71 3.97 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 66, 340 $ 99, 300 83,800 113,000 190,000 226,000 96,100 107,200 $436,240 $545,500 Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets Common stock, $5 par value Retained earnings $ 29,800 $ 52,200 55,600 113,400 388,000 412,500 190,000 226,000 54,365 88,299 Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (d) inventory turnover, (e) days' sales in inventory, and (1) days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk. 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol 1B short term For both companies compute the current ratio. (a) Company Choose Numerator: Current Ratio | Choose Denominator: = Current Ratio = Current ratio = 0 to 1 = 0 to 1 Barco Kyan 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol 1B short term For both companies compute the acid-test ratio. Acid-Test Ratio (b) Company Choose Numerator: ose Denominator: Acid-Test Ratio + + + Barco Kyan Acid-test ratio 0 to 1 0 to 1 + + 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol 1B short term For both companies compute the accounts (including notes) receivable turnover. (c) Company Choose Numerator: Accounts Receivable Turnover I Choose Denominator: = Accounts Receivable Turnover = Accounts receivable turnover ID = 0 times 0 times Barco Kyan 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal " Uncol 1B short term For both companies compute the inventory turnover. (d) Company Choose Numerator: Inventory Turnover I Choose Denominator: = Inventory Turnover Inventory turnover Barco Kyan 0 times 0 times UUUUUUUUUUUUUU 1A Current Ratio 1A Acid Test | 1A Acct Rec Ratio Turn 1A Days Sal in 1A Invent Turnover 1A Days Sal Uncol 1B short term Toy Inv For both companies compute the days' sales in inventory. (e) Company Choose Numerator: Days' Sales in Inventory. 7 Choose Denominator: x Days X = Days' Sales in Inventory Days' sales in inventory 0 days 0 days Barco X Kyan X 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in 1A Days Sal Uncol 1B short term Inv For both companies compute the days' sales uncollected. (f) CompanyChoose Numerator: Days' Sales Uncollected 7 Choose Denominator: x Days Days' Sales Uncollected = Days' sales uncollected o days 0 days Barco Kyan 1A Current Ratio 1A Acid Test Ratio 1A Acct Rec Turn 1A Invent Turnover 1A Days Sal in Inv 1A Days Sal Uncol 1B short term Identify the company you consider to be the better short-term credit risk. Better short-term credit risk